Success story

Subsidiary of a multinational in the naval sector enters into pre-insolvency proceedings, putting at risk the execution of the guarantees granted by the parent company

Context:

The subsidiary of a multinational in the naval sector filed for pre-insolvency proceedings. The parent company had granted very significant guarantees to the subsidiary which were not taken into account and which, if enforced, would put the parent company into insolvency.

How we helped:

We analyzed the situation of the subsidiary in pre-insolvency proceedings, identifying the impossibility of reaching an agreement with the creditors within the 3-month deadline.
We proceeded to analyze the subsidiary’s economic situation in detail, detecting 2 unprofitable lines of business and one profitable line of business.
It was decided to leave the unprofitable lines in insolvency proceedings and to concentrate the parent company’s support on saving the profitable part, so that the guarantees would serve to support its activity and would not be executed.

Result:

The parent company’s guarantees were not enforced as the court took a very positive view of the support and continuity of the subsidiary’s profitable business line and the preservation of jobs.

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